Career Opportunities Inc. awarded $7.69M contract for North Texas JCC operations, spanning over 1500 days

Contract Overview

Contract Amount: $76,921,943 ($76.9M)

Contractor: Career Opportunities Inc

Awarding Agency: Department of Labor

Start Date: 2010-11-01

End Date: 2015-02-19

Contract Duration: 1,571 days

Daily Burn Rate: $49.0K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 5

Pricing Type: COST PLUS INCENTIVE FEE

Sector: Other

Official Description: OPERATION OF THE NORTH TX JCC

Place of Performance

Location: MCKINNEY, COLLIN County, TEXAS, 75069

State: Texas Government Spending

Plain-Language Summary

Department of Labor obligated $76.9 million to CAREER OPPORTUNITIES INC for work described as: OPERATION OF THE NORTH TX JCC Key points: 1. Contract value represents a significant investment in regional employment services. 2. The contract was awarded under full and open competition, suggesting a robust bidding process. 3. Performance-based contract type (Cost Plus Incentive Fee) aims to align contractor incentives with government objectives. 4. The duration of the contract (over 4 years) indicates a long-term need for these services. 5. The North American Industry Classification System (NAICS) code 611519 points to specialized technical and trade school services. 6. The contract's geographic focus on Texas suggests a targeted approach to workforce development.

Value Assessment

Rating: fair

The total award amount of $7.69 million over approximately 1571 days averages to roughly $4,900 per day. Benchmarking this against similar contracts for operational support of job centers is difficult without more specific service delivery metrics. However, the Cost Plus Incentive Fee (CPIF) structure suggests that the final cost could vary based on performance, making a direct value assessment challenging without knowing the incentive payouts. The contract's duration and scope imply a substantial operational requirement.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating that while the competition was open, certain sources may have been excluded prior to the final award. The presence of 5 bids suggests a reasonable level of competition. The specific exclusion of sources warrants further investigation to understand its potential impact on price discovery and overall value.

Taxpayer Impact: The open competition, despite potential exclusions, generally benefits taxpayers by encouraging multiple vendors to offer competitive pricing. However, the nature of the exclusions could limit the full potential for cost savings if highly competitive vendors were prevented from bidding.

Public Impact

The primary beneficiaries are individuals in North Texas seeking employment and training services. The contract supports the operation of the North Texas Job and Career Center (JCC). Services likely include job placement assistance, career counseling, and skills training. The geographic impact is concentrated within the North Texas region. The contract may have implications for the local workforce development ecosystem and training providers.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'exclusion of sources' clause in the competition type requires clarification to ensure maximum competition.
CPIF contracts can lead to cost overruns if incentives are not carefully structured and monitored.
Lack of specific performance metrics in the provided data makes it difficult to assess contractor efficiency.
The long contract duration could lead to vendor complacency if not actively managed.

Positive Signals

Awarded under full and open competition, indicating a structured procurement process.
The use of a CPIF contract structure aims to incentivize contractor performance.
The contract duration suggests a sustained commitment to addressing regional employment needs.
The contractor, Career Opportunities Inc., has secured a significant federal award, implying some level of established capability.

Sector Analysis

The contract falls within the broader 'Educational Services' sector, specifically focusing on technical and trade schools (NAICS 611519). This sector is crucial for workforce development, providing specialized training to meet industry demands. Federal spending in this area often supports programs aimed at upskilling the workforce, addressing skills gaps, and facilitating re-entry into the labor market. Comparable spending benchmarks would typically involve analyzing the cost per participant or per training hour for similar vocational programs funded by the government.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). There is no explicit information regarding subcontracting plans. Therefore, the direct impact on the small business ecosystem is likely minimal unless Career Opportunities Inc. voluntarily engages small businesses as subcontractors. Further investigation into subcontracting reports would be necessary to determine any indirect benefits to small businesses.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of Labor's Employment and Training Administration. Mechanisms likely include regular performance reviews, financial audits, and adherence to the terms of the Cost Plus Incentive Fee structure. Transparency is generally facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Workforce Innovation and Opportunity Act (WIOA) Programs
Job Corps Program
Adult Education and Family Literacy Programs
State Workforce Agency Operations Support
Vocational Rehabilitation Services

Risk Flags

Competition Exclusion Clause
CPIF Cost Overrun Potential
Long Duration Contract Risk
Lack of Specific Performance Metrics

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $76.9 million to CAREER OPPORTUNITIES INC. OPERATION OF THE NORTH TX JCC

Who is the contractor on this award?

The obligated recipient is CAREER OPPORTUNITIES INC.

Which agency awarded this contract?

Awarding agency: Department of Labor (Employment and Training Administration).

What is the total obligated amount?

The obligated amount is $76.9 million.

What is the period of performance?

Start: 2010-11-01. End: 2015-02-19.

What specific services are included under the 'OPERATION OF THE NORTH TX JCC' contract?

While the specific service details are not fully enumerated in the provided data, the contract's classification under NAICS code 611519 ('Other Technical and Trade Schools') and its purpose ('OPERATION OF THE NORTH TX JCC') strongly suggest a focus on workforce development services. This likely includes, but is not limited to, job readiness training, career counseling, skills assessment, job search assistance, placement services, and potentially referrals to vocational training programs. The contract's duration and value indicate a comprehensive operational scope for the Job and Career Center, aiming to support individuals in acquiring skills and finding employment within the North Texas region.

How does the Cost Plus Incentive Fee (CPIF) structure impact the final cost and contractor performance?

A Cost Plus Incentive Fee (CPIF) contract is designed to share the risks and rewards between the government and the contractor. The contractor is reimbursed for allowable costs and receives a fixed fee that is adjusted based on performance against pre-determined targets (e.g., cost, schedule, performance metrics). For this contract, the final cost paid to Career Opportunities Inc. could be higher or lower than initially projected, depending on how well they meet the incentive criteria. This structure incentivizes the contractor to control costs and achieve specific performance objectives, potentially leading to better value for the government if targets are met or exceeded. However, it also requires robust government oversight to ensure the incentive targets are appropriate and that the contractor is genuinely motivated to achieve them.

What is the significance of 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES'?

This contract type signifies a procurement process that began with the intention of full and open competition, meaning all responsible sources were initially permitted to submit offers. However, 'after exclusion of sources' indicates that certain potential bidders were subsequently excluded from the competition before the final award was made. The reasons for exclusion can vary, including failure to meet minimum qualifications, non-compliance with solicitation requirements, or other specific criteria outlined in the solicitation. While the competition was not entirely unrestricted, the fact that it started as 'full and open' and still attracted 5 bids suggests a competitive environment. The specific impact on price and innovation depends heavily on the number and nature of the excluded sources.

What is the historical spending pattern for 'OPERATION OF THE NORTH TX JCC' or similar services by the Department of Labor?

Without access to historical contract data specifically for 'OPERATION OF THE NORTH TX JCC' prior to this award, a direct historical spending pattern is difficult to establish. However, the Department of Labor (DOL) consistently invests significant funds in workforce development programs, including the operation of Job and Career Centers, training initiatives, and employment services across the nation. Spending in this category can fluctuate based on economic conditions, legislative priorities, and the availability of funding. Analyzing DOL's broader budget allocations for employment and training services, particularly those managed by the Employment and Training Administration (ETA), would provide context for the scale of this $7.69 million award relative to the agency's overall mission and historical investments in similar operational support contracts.

What are the potential risks associated with a long-duration contract like this (1571 days)?

Long-duration contracts, such as this 1571-day award, present several potential risks. Firstly, there's the risk of vendor complacency; once a long-term commitment is secured, the contractor might reduce efforts to innovate or improve service delivery if oversight is not rigorous. Secondly, market conditions, technological advancements, or evolving program requirements could render the contracted services less effective or efficient over time, leading to a mismatch between the contract's scope and current needs. Thirdly, long-term financial commitments can strain agency budgets, especially if initial cost estimates prove inaccurate or if the CPIF structure leads to higher-than-expected payouts. Finally, a prolonged relationship could potentially lead to a lack of fresh perspectives or reduced incentive for competitive pricing in future procurements if the incumbent contractor becomes entrenched.

Industry Classification

NAICS: Educational Services › Technical and Trade Schools › Other Technical and Trade Schools

Product/Service Code: OPERATION OF GOVT OWNED FACILITY › OPERATE GOVT OWNED BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: S10F6TX017

Offers Received: 5

Pricing Type: COST PLUS INCENTIVE FEE (V)

Evaluated Preference: NONE

Contractor Details

Address: 1251 IH 35 N, SAN MARCOS, TX, 78666

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $94,954,475

Exercised Options: $76,921,943

Current Obligation: $76,921,943

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NOT OBTAINED - WAIVED

Timeline